CVC Brasil Operadora e Agencia de Viagens SA

BOVESPA:CVCB3

Earnings Call Transcript 2022-Q4

[Operator]

[Audio Gap] The planning, financing and IR Director.

Please bear in mind that this event is being recorded, [Operator Instructions] This event is also being broadcast simultaneously over the Internet via webcast and can be accessed at www.cvc.com.br/ir. Through webcast, you will be able to control the selection of slides and also download the files. The replay of this event will be shortly after its conclusion.

Before proceeding, please bear in mind that the forward-looking statements made herein regarding prospects, operational and financial goals are no guarantees of performance for the company. They are based on the expectations and assumptions of the company management. Investors and analysts should understand that sectoral and overall conditions could impact the future results of CVC Corp and in the future, the company could present results that differ materially from those expressed in the presentation. Attaining the goals is a consequence of an environment of risks and uncertainties. The data and the information presented refer to the company and the economic scenario, referring to the fourth quarter and the full year of 2022 based on facts, news and projections available to CVC Corp.

With the conclusion of this legal notice, I would like to turn the floor over to Mr. Leonel Andrade, the CEO, who will begin the presentation. You may proceed, sir.

[Leonel De Andrade Neto, executive]

Good afternoon to everybody. Thank you, and it is a pleasure to be with you. Thank you once again for the opportunity to clarify what is happening in the company and our next steps. I begin on Page 4. I would like to refer to the financial and operational highlights referring to 2022 where we have a significant transformation in the company. And we began the year with the pandemic. We still had a strong pandemic and -- for the rest of the year. Well, we now know that the pandemic is something of the past, but it isn't fully over yet. We had a 56% growth in terms of bookings and 64% in consumed bookings. The company was fully operational with a growth of 48% in net revenue and EBITDA reaching BRL 167 million.

If we compare this to 2021, the growth was BRL 400 million in only 12 months. This shows that we have full capacity to present consistent results, and this is what we expect going forward. Well, the very good news is that last year we were able to balance the company [indiscernible] good footing. We had our first digital transformation. We have a company that has made significant strides in technology and its processes. And this is thanks to our project of new platforms, the overhaul and the digital transformation and CRM that was concluded at the end of last year. And of course, this is a great satisfaction for the company.

Last year, this tripart also referred to governance. We ended the year 2022 with our governance projects that had begun years before so that our company would be acknowledged as a company with high credibility and transparency with the right people at the right place. And more important than all of this with a culture, I would like to highlight the senior team that is in the company at present, working with compliance and fully focused with that culture of governance, enabling us to undergo a very positive transformation.

And let's focus on sales, which is the third part of this tripart. We have a high technical and operational capacity at present. And presently, more than 50% of the transactions that take place at CVC have been fully digitized. 55% of these transactions do go through a digital process without any manual sales activity, which is very important for a company that a short while ago worked entirely manually. We have good technology. We have a very important governance, and now is the time to show that CVC has always been a very competent company.

In January, we opened up the year in a brilliant way, and this behavior continues on. In January, we had a growth of 90% vis-a-vis the previous year with a performance much above our expectations. Only in our stores and because of the digital transformation, we observed a significant change of management. We had a growth of 130%, the B2C sales, which is our most profitable channel. So one that grows the most at present. And this gives us a positive outlook for the business.

The third block I would like to refer to is the capital structure. First of all, I would like to thank you the credibility of our creditors who at no point in time questioned or denied us any credit. They never question conditions or terms or whether the company should receive credit. And this credit was fundamental for the restructuring. Now that the company is entering a consistent generation of operations, we can now deal with our debt. And 2.5 years ago, our debt was BRL 2.5 million. We are now at BRL 750 million, the lowest level of gross debt since December of '17 before the pandemic. I would like to thank you for this, and this will generate an enormous opportunity for the business and allows us to be very confident with the coming months and the evolution of the company.

On the next page, I'm not going to go into detail, but I would like to say that the digital transformation that was promised by CVC is coming to its conclusion. In 2022, it was fundamental for us. We have a new front office, the B2C Atlas, and this has been an enormous competitive edge that we have, enabling us to have great productivity with cross-sell and upsell being bolstered, and Atlas holds 100% of our customer base. And we have a base of 35 million customers that runs in the system where we're able to follow up on any evolution of customers in the stores, in the app through Internet. Therefore, this has enhanced our productivity.

We also have worked with funding with the credit marketplace working very well. We launched our loyalty program for the time being in an experimental phase, all in the digital world, it will begin to be distributed very soon. And our dynamic pricing system is already in place, allowing us a very strong differential when it comes to price.

And we have Connect Us. We have a payment hub, of course, and Connect Us, which enables us to bring in new partners to the company. We already have more than 40 partners who have been integrated. So the transformation has already taken place. It is underway, and we're just missing an evolution that will take place in the coming months in B2B with a change of platforms. A significant evolution in our leisure platforms. And we're going to think about a new brand because of the consolidation. Our brand, of course, is one of the most important in the market when it comes to travel. I'm very proud to say that CVC ended the year 2022 with no further remains of the pandemic with 100% of the best talents in the market and especially beginning to generate results after the enormous crisis that we underwent, not only because of the pandemic, but because of the crisis that the company faced.

To end on Page 6, it's worthwhile mentioning that the entire company is operational. It leaves the pandemic with all of our position maintained. We are the only company in Latin America with a position of leadership in B2B as well as in B2C. We have very good competitors in B2C, but who do not participate in the B2B business. We do have competitors in the B2B system, a market with less governance, a market with many multifold competitors, but these competitors have no presence, no leverage in the B2C business. So this is a position in which CVC finds itself today.

We came out of the pandemic maintaining our franchise as one of the largest chains in the region. Our franchisees are in a very special position, very aligned and selling as never before. Our store sales have reached a very consistent level, much better than they had before the pandemic and same-store sales. Once again, we were elected top of mind for the 12th consecutive year, once again. And our app, the CVC app is featured in the Top of Mind award in the travel app category. This is the first time that there is this measurement for a travel app. And of course, we were able to be recalled for that.

Our CRM is a driver. We have 35 million customers and 16 million customers in the influence engine. Well, this has been extremely gratifying simply to mention a figure. In January, we had more than 100 million pushes. Digital offers to the customers. More than half of these offers are coming out exclusively in a digital way without any manual influence. And this is what the company has been doing, working with artificial intelligence and the response to these transactions has been much higher than when we had manual interference. This means that we're truly becoming automated with artificial intelligence and fully digital.

And at the end, I will speak about how this will lead us into the future. I will give the floor to my colleague, Marcelo Kopel, to speak about the results of CVC Corp.

[Marcelo Kopel, executive]

Well, good afternoon, everybody. We are now on Slide #8, where we can see the performance based on Argentina and Brazil. We see an expressive increase in the bookings year-on-year. And this, of course, because of the resumption. I remind you of the comment made by Leonel despite the impact that we had at the beginning of the year with the pandemic still attacking us in January and February. Despite this, we had considerable growth in Brazil in B2B and B2C an increase in consumed bookings, a growth of 40% in B2C and 54% in B2B. And when we look at the 4 quarters a great deal of influence due to Black Friday that was quite strong in 2022 vis-a-vis 2021.

Another highlight that we have underscored since the third quarter is the importance of cruises in our operation when we look at this quarter-on-quarter. In the fourth quarter of '22, the growth was of over 200%. B2B follows the growth trend because of the resumption of corporate events and business traveling. This is very important, and we have benefited from this.

In Argentina, a growth of more than 140% year-on-year, 17% when we compare the fourth quarter of '22 with fourth quarter of '21 with a highlight for international destinations. This has been determined in the case of Argentina, where there is a presence for international traveling, and we were able to capture this with an increase, especially in the fourth quarter because of the World Cup event where we captured an important part of the movements. Our B2P in Argentina has always stood out considerably in the fourth quarter.

When we think about net revenue for the year, it represents a growth of 36% year-on-year and 69% in Argentina, in line with the growth of reservation. When we speak about Brazil, in terms of take rate and net revenue, we had a mix more of B2B and B2C, and in case of B2C, as Leonel mentioned, in the maritime segment. This is a different group when we carry out a meeting of our results. It has a lower average take rate, but it doesn't require working capital. We sell in installments. Installments don't consume working capital. And we're working with direct funding.

In the case of Argentina, I had already spoken about international destinations. And to give you more color, 90% of net sales in the last quarter of 2022 was for international destinations compared with 69% in the fourth quarter '21. So the availability increased, and we were able to resume our level of international traveling. Argentina has a very good take rate, an increase of 0.5%, which comes from our B2B unit Almundo where we were able to enhance land and air traveling.

I would like to go on to Slide 9 at this point to speak about our financial performance. We speak about our consolidated net revenue that went beyond BRL 1 million, a 40% growth year-on-year. And in the fourth quarter, it was very similar to the fourth quarter of 2021, especially due to the impact of the business mix. We had a higher presence in B2B vis-a-vis B2C. And because of this, the take rate plus undergo some dilution.

The fourth quarter of '21 had a higher presence of domestic traveling compared to international traveling, and this also favored their quarter. When we look at the consolidated take rate for the company had 8.7%, there was a strong growth of maritime traveling. Of all the B2C sales in the fourth quarter of '22, 17% of our sales had a share of maritime traveling compared to 11%. So it's gaining relevance. These are products that are very important for our audience at large, and we are occupying significant space in the maritime area. I spoke about the fourth quarter of '21, where the domestic traveling favored our assumption, but a recovery of international destinations came somewhat later. And in the second half of this year, it became quite relevant for the company. When we look at the mix of domestic and international traveling vis-a-vis the previous ever, the domestic traveling was 65%, international traveling 35%, this year it was practically 50-50 for domestic and international travels.

To speak about SG&A, we had a reduction when we compare the fourth quarter of '22 with 21%, 2.1% less. We are working arduously to manage your financial expenses focused on efficiency. And we're beginning to enjoy the investment made in automation in the last few years with the adjustment and structure that we carried out in the fourth quarter of last year and in January of this year. So this is something that is important for us the efficiency program. It will continue along 2023 for all of our operating activities and expense control.

To speak about EBITDA, we reached BRL 83 million in the fourth quarter, the best result since the third quarter of '19, once again, impacted by a growth in revenue and the control of expenses. We did have some reversions and provisions that materialized in the fourth quarter, a growth of incentives are referring to benefit. And this is due to the increase of reservations or bookings that we had this year. These are found in other operating expenses. And we got to an EBITDA of BRL 167 million, a variation year-on-year of almost BRL 400 million.

We go on to Slide #10, where we speak about cash flow, and well -- this is what our operations demand in terms of working capital. But we also have very strong investments this year. With the digital transformation, the thick of it was implemented in the second half of 2022. We had a growth of BRL 240 million to be able to sustain this. We work with the capital market, managing our debt.

In mid last year, we carried out a follow-on of approximately BRL 400 million, basically used to reinforce our working capital and to amortize BRL 100 million of our debt. Now when it comes to interest rates, a scenario in 2022 was somewhat more burdensome. We had 12.45% increase compared to 4% -- 4.5% in 2021. As our debt is indexed to CDI, this was an additional in our financial expenses. We end with cash of approximately BRL 700 million. And at the end of 2022 and beginning of 2023, we're working towards the reprofiling of our debt.

This was mentioned through a material fact, and I will speak about this again on Slide #11. To the left of Slide #11, we leave an amortization schedule to the left of the slide with BRL 665 million in the second quarter of '23, and BRL 100 million of amortization in the second quarter of '24 and '25. The proposed amortization schedule which is what we have just negotiated with the market allows us an initial amortization of BRL 124 million this year and amortization of BRL 75 million in the fourth quarter of '24 and BRL 315 million or BRL 335 million (sic) BRL 336 million, I'm sorry, in the fourth quarter of '25 and the fourth quarter of '26. The negotiations we carried out with the agreement of our debenture holders and shareholders foresees a situation where we have a debt that is more aligned with what we see vis-a-vis the cash generation of the company and our ability to grow.

We can highlight in this operation that we will have an API rate by 5.5% per annum. This will be the cost of the operation, CDI +7%. We have semestral payment of interest beginning in 2024, an initial amortization of BRL 124 million and debt amortization of 10% of that in November '24, 45% in November '25, and 45% in November '26.

Now we begin a very challenging moment. We did receive the support of our shareholders and debenture holders who understand that this moment of resumption is here to stay. The company is well positioned for this, and through negotiations, we were able to reach these conditions, enabling the company to continue on with its business.

With this, I would like to conclude the slide referring to the financial highlights, and I return the floor to Leonel so that he can refer to our Flight Plan that is on Slide 13.

[Leonel De Andrade Neto, executive]

Well, I believe it is not necessary to speak about everything on Slide 13. This year in the company, we have 2 broad priorities. The first, of course, our sales, our capacity to recover a position of high growth in sales, especially with a highlight for B2C, which is what has had a better result. Our factory of products has been installed. We had a change of management that has been very positive for the business. Great alignment with suppliers for distribution. We have a fantastic factory or offer of products, incredible technological evolution. We are working digitally. And we're extremely aligned with our franchisees, and we have a management that is aligned and focused.

I'm convinced that because of this, sales priority will be well tackled during the year. And the beginning of the year shows us that this will become a reality. The second broad priority is operational efficiency. We're going to focus on cost reduction, something we have already done, a review of processes through technology and perhaps what is more important a new culture at the company. A company of cost control, of intelligence, enabling us to grow, taking appropriation of the business scale. And during the year, we will have several opportunities, and we will have a sustainable growth of revenues with the control of expenses and the reduction of expenses as well as we can.

I truly do not doubt that we are at the very best moment of the company, and we have a very promising future sustained by our new governance.

We should ensure that all markets work towards this goal. And the second fundamental point is that we have credit and credibility and the company is becoming aligned to be able to fly again, to take off again.

Once again, I would like to thank all of you for your attendance. We will now go on to the question-and-answer session.

[Operator]

[Operator Instructions] Our first question comes from Eric Huang from Santander Bank.

[Eric Huang, analyst]

We have 2 questions here. Now let's look at the part of CapEx. We should have a CapEx spending at maintenance level. Is the level we see due to depreciation? Or are we going to reach that figure of BRL 125 million a year? And because of the investments that you have carried out in the last few years, which are the opportunities that you foresee during 2023? Well, in terms of optimizing your processes and further automation.

[Marcelo Kopel, executive]

I'm going to begin responding on CapEx, and we'll see what happens. If you look at the material fact that we published, we make reference to our debt covenants and the cap that we have for CapEx, which is BRL 125 million. Approximately half of what we had in 2022. As I mentioned, since Leonel has come in to the company, the company has been investing heavily in digitization. The second half of last year was a moment for our deliveries and we are now working with lower investment as most of the investments have been carried out, and we can work with that, and this is in the material fact that was disclosed.

[Leonel De Andrade Neto, executive]

Well, thank you, Eric. And allow me to speak about our investments and platforms and digitization. The first point I would like to underscore is that as the company was bereft of investment for many years. We did not have a CRM. Our CRM was obsolete and did not manage information. My first focus was again intelligence on our customers. What's the use of having an app or a transaction platform if you're not able to manage and influence your customers.

Nowadays, we have reached 35 million customers with state-of-the-art CRMs, not only people management, but especially in terms of platforms, we have the best platforms services globally. And of course, this is where our influence begins. We have 14 million, 15 million customers and growing strongly. And by following the customers that have authorized it, we are able to grow our influence.

What happens in practice when this is matched with our stores. We have Atlas that has several peripherals, payment methods. From the viewpoint of customers, it is a new platform and it act as our customer base perfectly. We now have the capacity for digital relationship that did not exist formerly.

When a customer finds a product, for example, seeking a trip to Florianópolis in the south, we automatically capture this and send out a digital offer. When the customer sees that digital offer and interacts automatically with a store, well, the store will see that they're carrying out a research and there will be contact made. This is something that did not exist previously.

The stores, since the implementation of the platform, have more than 20% of the transactions carried out without a physical presence of the customer. It shortens distances and the transaction is made without a physical presence. These stores can service any person anywhere from their offices, simply through an iPad, for example, and they can conclude a transaction. 100% of the platform is based on Internet. What is more important, perhaps, is that the platform is the sole platform for all payments and all sales. This has increased our productivity.

A customer that comes into the store, well, the operator doesn't have to enter several different systems to see different means of payment or different products. This has enabled a significant growth in cross-sell. When the customer carries out a survey, automatically our digital world comes into action and offers content so the customer can carry out this trip, not only receive a quote. Automatically, the store is activated when anything is done digitally.

And with this, all of our franchisees are stating that their productivity has increased incredibly. And this factory of products is fundamental. When the customer is seeking a hotel, the screen will automatically bring in from the app or from the store where the platform is the same. This screen will show new opportunities offering additional products. This is what the transformation has allowed. We have left the era of nonsense to a fully advanced era.

What will happen going forward, this business will gain more processes and the platforms will also bring advantages. The platform comes around with the most modern systems. We will have new versions, new evolutions, offering ever more products and offers. In the coming 2 years, we will continue this evolution, and we will become a model company in terms of digitization. All of this has been foreseen with the lower CapEx that we used to have vis-a-vis the past. I hope to have clarified your doubts.

[Marcelo Kopel, executive]

Well, simply to complement something. The second part of your question on opportunities to continue reducing expenses. What Leonel has described and our focus on the review of activities and processes. All of this is being sustained with a consultancy that has been working with us since November. Given our scale, we're working on processes with the higher volumes. And to see which are the adjustments, the automation necessary to generate the necessary savings.

In this context, of course, we will be able to capture reductions until midyear. The reductions made so far already converse with the revision of processes we carried out allowing us to have a management consolidation. We're working with a different management and have been able to obtain significant efficiency gains.

[Operator]

Our next question will be through the web. Mr. [Yuri] from [Bravia Investimentos]. Could you give us more color in the decrease of consumed bookings in B2C year-on-year? Which are the main bottlenecks that you observe in the sector?

[Leonel De Andrade Neto, executive]

[Yuri], thank you very much for your question. Eric was a previous question. That's a very interesting question, Yuri, the main bottleneck as you call it. Well, the main bottleneck was in-house. We did not have the technology to be able to compete. We pay a very high price for the digital transformation in the past. It has been very positive. We have implemented new platforms with a huge impact on the customers.

Customers can see their trip, communication and a huge impact in terms of sales. This is a migration that we observed in the last 3 months of the year. And well, the in-house problems ended up being a huge distraction. Everything works spectacularly. Now there is a single platform. The older platforms have been disconnected and this platform is highly productive.

When we look at the present day performance of our business, and we looked at the January figures that are very consistent, we trust that this year, we will have the -- a different behavior. We will grow more than the average market and the average of other company, with B2C having the greatest growth.

In fact, last year was not a good year. We had to carry out a change of management and products and sales due to this, and we now have fully enhanced the company and we are now the business with the best practices. We're sovereign in this. We have very good competitors. They're very good in the digital world. We don't have brick-and-mortar competitors where we reign. We have digital competitors that are very good with good governance. Competitors that you can check if you click the right numbers. They're very good in B2C.

What are we doing, therefore, reducing the digital gap substantially. And we're going to be best in class in that community. We're the only market competitor at present that has a mass digital presence that is growing with significant evolution matched with the physical service in brick-and-mortar stores. This, of course, has given us an edge. We know how to make the most of it to evolve in the coming months. I hope to have answered your questions.

[Operator]

Our next question is also through the web from Luis from [indiscernible].

I have two questions. The SG&A work, has it already had an impact? Is there room for further reductions? And if you can speak about the CapEx dynamic going forward, considering that most of your projects are at very advanced stages?

[Marcelo Kopel, executive]

Luis, thank you for the questions. I'm going to link this to what I said a short time ago, yes. I did mention that we had 2 rounds of reviews in October of last year and one now in January of this year, where we looked at activities and processes and the management level, all of this has already been incorporated. This reduction has been incorporated this year.

Although work is ongoing. And we can guarantee with the coming into operation of the systems, a better front office unified with B2C. This will enable us to work in back office processes in a more efficient way. Regarding our CapEx, we have mentioned BRL 125 million in the material fact. And this will enable us to do what we need to do. This back office journey will bear fruit. And of course, it does depend on that level of CapEx.

[Leonel De Andrade Neto, executive]

I would like to add 2 comments, and thank you, First, I would like to assure you and assure the entire market of our strong commitment with cost management and operational efficiency. I think this doesn't depend on consultancy or investments in technology. It depends on our organizational culture, and having the right people that people plan work on this day after day. The company has had little controls, but has evolved substantially in terms of managerial control.

As the company CEO, I would like to clarify my commitment that this year, we will have a significantly enhanced operational efficiency, not only in terms of growth because the company will grow in revenue and taking advantage of the cost reduction and the efficiency gains in our processes. This is one point.

The second point in CapEx, for those who have invested in CVC very well, perhaps not everybody was lagging behind, like CVC, when we look at the B2C market. Of course, this investment has already been made and is allowing us to be very enthusiastic. We will continue to have investments in B2C. This is needed for technology.

Going forward, we will have lower investments, and these lower investments associated with a more efficient management of cost, productivity and growth of revenue will enable us to adjust our investment levels and our cash generation. I'm convinced that we will change the level at which the company is presently going forward.

[Operator]

Our next question is from Nicholas from JPMorgan.

[Unknown Analyst]

If you could give us more color on the credit market place. This is a very relevant initiative for the company. What is the penetration of this service and bookings? And how far can it get in the medium run?

[Marcelo Kopel, executive]

Thank you, Nicholas. This is [Kopel]. We entered the marketplace and to be a marketplace, we had to have an additional player. We entered only in November of last year in the fourth quarter. Nowadays, the sales that we have carried out for B2C depending on the week, represent 0.5% of our sales. We now have a third player, a large retail bank, the second largest retail bank.

And the goal, of course, is to allow customers to take better products and services through a better plant And what happens is that we no longer tax our working capital. It is the financial institution that underlies is funding. And at the same time, those who carry the financial burden of the customers who will decide which is the payment plan that is the best that we have planned with up to 24 installments. This is something that allows us flexibility.

We're not pegged to a single financial institution. And when we have typical market situations where you can have a more restrictive financial institution than another, having more than 1 institution working with us allows us to navigate through this period with less restriction. Of course, there are restrictions, but we suffer less from them.

Now how far do we want to get. We have very strong sales in credit cards, and they will continue to grow. We have sales through bills or ticket without interest rate. And we also have a with interest rates. Every percentage point that we change has an impact on our working capital and on the cost of operations.

Now with the bank, we unburdened our working capital. And when we break the credit card, once again, we unburdened our working capital. I would like to have this figure becoming as high as possible. We don't have a target. Perhaps Leonel would like to add something, but it seems a completely different compared to what we see in the market.

[Leonel De Andrade Neto, executive]

Yes, I can complement the answer. What I can say is that it is very important to have this marketplace as a gigantic operation. We are the company with the lowest ticket compared to the market average. We service the B and C bracket when it comes to traveling, and it depend more on credit offers, products and credit offers more than the rest of the market.

And the marketplace grants us flexibility of working with different partners. We're working with one bank. Soon, there will be another bank. We will have several banks, all very robust in the marketplace as well as having different products. All types of credit products will be made available in the coming months. This sets us aside and will continue to set us aside and it will bring added value to the company.

[Operator]

Our next question is from [Gilberto from Galapagos].

[Unknown Analyst]

The company has BRL 1.36 million of anticipated contracts and circulating liabilities, which is the cash foreseen because of these liabilities in 2023.

[Marcelo Kopel, executive]

Thank you for the question. I will come up with an answer for you. First, highlighting the expressive reduction that we have had in the credit layer. For example, these are customers during the pandemic represented BRL 9 billion. Basically, these are customers that do want to travel. And they asked to remain with credit, and they're here waiting for these credits. In 2022, as the product offer expanded and the availability of seats, we had a significant reduction in this amount. A reduction of more than BRL 400 million in that account.

Some people traveled, which is very good for us. The letters of credit, and I'm going to speak about the contracts have 2 components of the hotel and the traveling component. This air ticket has already been paid to the companies. Therefore, if anybody travels, the air ticket has already been paid for with BRL 3 million. We're speaking about the hotel component is paid. And so far as the passenger ends up traveling.

If you're going to model based on this, it represents 1.3 and you can divide it into 2 components, the air travel component that has already been paid and the land part that will have to be paid. On December 31, we had BRL 844 million. And I spoke to you about the letter of credit. So you can model the cash effect using the logic that I have just explained to you.

[Operator]

At this point, we would like to end the question-and-answer session. I will return the floor to Mr. Leonel Andrade for the closing remarks. You may proceed, Mr. Andrade.

[Leonel De Andrade Neto, executive]

I would like to thank all of you and highlight some points before closing. Well, the company's focus is on operational efficiency underway in Brazil and highly consolidated in Argentina. We are leaders in both countries in several segments. It's an operation that cannot be compared. There is no competitor that has the same footprint that we have in these consolidated businesses. We have a clear growth of sales and revenues. This is the outlook for the year, and we're working consistently in operational efficiency and cost reduction.

Everything has been set in place along with the operational work of the company. Our brand is top of mind, and our team, of course, will put all of this into practice. We have a great deal of know-how when it comes to management. Our governance requires no further comments. It is unique in the market. Therefore, we're working very strongly taking care of the foundation of the company and this foundation is evolving. We truly believe in the future of the business and we believe in the company's sustainability.

We also have investments, financial investments, investments in people, in management, in sustainability, diversity and much more. Finally, the best of all is that winds are blowing in our favor. The market is growing. It is very proactive. Everybody is going back to traveling. There is a significant surge, strong demand. And of course, we're going to respond to this with winds blowing in our favor. This is always very positive. When people speak about traveling, CVC is what will come to mind. I'm highly optimistic about the business. I would like to thank you once again, and we are at your entire disposal as is our team. Thank you very much.

[Operator]

The results confront for CVC Corp ends here. We would like to thank all of you for your participation. Have a good afternoon, and thank you for using Chorus Call.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]